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Thursday 9th October, 2008

ADMIN USE ONLY | 18:15 UK time, Thursday, 9 October 2008

Here with more news of tonight's programme is Kirsty

Hello to viewers global and local.

The world is turning on its head, and the fallout is far from over. Locally - council after council are revealing that they have investments in Icelandic banks - totalling hundreds of millions of pounds - and it is not clear if the Government bail out extends to them.

Globally - what will be the new financial order that will emerge from the ashes? World finance ministers are heading to Washington for the G7 and IMF meetings. Will Bretton Woods be replaced by a twenty first century version - a "Phoenix " accord? We'll be speaking to James Purnell the minister for Work and Pensions about the impact of all this on jobs, services and pensions.

The government's decision to take a stake in our major banks to restore confidence and reboot interbank lending certainly has not achieved the latter yet. Why not? Will the US have to adopt the same strategy before interbank lending trades at a reasonable rate of interest and is thus restored? At the moment we are in the midst of casting a senior panel of bankers from around the globe to discuss all this.

Carbon capture and storage is one of the mechanisms by which climate change can be kept at bay, but our Science Editor Susan Watts reveals a radical new plan designed to stop climate change. It involves sucking carbon dioxide out of the atmosphere with the help of artificial trees or algae - it's a Tomorrows World moment, don't miss it !

Kirsty

Comments

  • Comment number 1.

    Um .... are you sure it is 'Parnell' you've booked? Was he Irish? The Secretary of
    State at DWP is, I think, called 'Purnell'?

    Ask him who is he when he arrives in the studio and please announce the correct
    spelling on air just in case Scotland's 25+
    New Deal unemployed have been writing
    to the wrong man for the last 8-10 years.

    And if it is indeed 'James Purnell MP' who
    signs in: ask him why he never replies to
    e-mail Enquiries copied to his MInisterial
    Private Office on the advice of Helpdesk
    officials in his own Department. A 'Deal'
    is a deal - even if after to years it is no
    longer 'New'- nor frankly very credible.

    How's about a bailout for those of us
    who were in the queue at Dundee's
    New Deal launch by Gordon Brown,
    Donald Dewar and Brian WIlson in
    January 1998 before Mr Purnell (sic)
    and his colleagues bail out bankers?

  • Comment number 2.

    Algae used to be big business in Girvan -
    but I think the market collapsed during
    or after The Falklands War for reasons
    I can't quite remember. Seaweed also
    stabilises the froth on beer - so there
    is more than one way that it mitigates
    the impact of global warming I guess!

  • Comment number 3.

    Further to post#!: Njall's New Deal saga
    is available on DWP files and I have an
    Icelandic sweater if that helps put the
    proverbial rocket under Parnell's rear!

  • Comment number 4.

    It strikes me that Councils have been telling porkies when they say they have no cash for local services. Oh well now they haven't.

    It occurs to me that the technology for capturing carbon could have been found many years ago. The green party, Green Piece, Friends of the Earth, you know those people that everyone called nutters who having been telling us for decades about the mess we are making of the planet.

    I keep hearing about cars sales declining and people opting for smaller economic cars. I have never had a car for less than ten years. The trouble is that it costs me more over that period to maintain the car than its original cost.

    Why are governments not encouraging us to repair our mechanical aids rather than dumbing them when the colour is out of fashion? How many watch repairers (real watches that is), cobblers etc are left to pass on their skills? How many of us can sew or darn? "Now is the weinter of our discontent"

    Sean (Frustrated)

  • Comment number 5.

    So, the bankers are coming in on tonight's show. Please ask them to explain in 'minute particulars' the following:
    1 why they have defrauded us all so spectacularly?

    2 Ask them if they are aware that there are many people in jail for far far less and aren't they surprised that they are not in handcuffs?

    3Ask them to explain clearly where 'their own' (ours in fact) money is right now so that we may follow suit?

    4 Ask, have they got fort Knox type safes hidden in secret rooms in their multi million pound mansions (mansions bought with our money of course)?

    5 Ask them if they have a private arrangement with perhaps the Vatican bank.

    6 Please find out for viewers what is happening with Swiss bank accounts as I have heard nothing mentioned - also whose money is stashed away in them?

    7 Please find out too where Gordon Brown has his wealth stashed (it is a perfectly pertinent and fair question given that it is his system, ultimately in league with Blair and Bush, that has exploded through eschewing real regulation.

    8 While I think it is true that ‘Lord’ (outrageous that) Snooty Mandy had his recent kidney stone problem treated in NHS, can you find out for us, was he on a mixed open ward where it is impossible to sleep, or safely tucked up in a 'private’ side ward', safe too from being passed NHS super bugs (uniquely bad in Uk compared to rest of Europe mainly because the NHS still has wards)?

    Finally, I suggest that Newsnight set up a big discussion on all the tried and tested alternative ways there are of doing things – given that the present banking system is so obviously fatally flawed , ideas like Mutual aid banks (building societies (sic) Credit Unions, Self build housing co-ops, shared ownership, barter and so on… These ideas need promoting and financing by a new and honest coalition government.
    Yours truly - a very x Labor supporter.

  • Comment number 6.

    PS
    A proper riot could do the trick!

  • Comment number 7.

    My local council installed grab rails for an
    OAP in Dundee within four hours of care
    workers suggesting this today. Perhaps
    we need to close down Whitehall which
    even after ten years hasn't cleared the
    queue in the Wellgate Job Centre here
    in Dundee when Gordon Brown's New Deal was launch by him personnally back in '98.

    What is more: thanks to a defiant Liberal/
    Labour coalition in Scotland followed by an
    SNP Government, council tax is frozen here and personal care for the elderly is free. It
    seems more important to safeguard such
    local services than bailout irresponsible City slicker bankers earning massive bonuses in
    London or sign blank cheques for Trident
    submarines - which nobody really needs.

    Why doesn't Labour scrap Trident - as a gesture to help pay for this bank bailout?
    Brown should lead from the front - like
    Alex Salmond - and focus on issues that
    really matter to people like local councils.

  • Comment number 8.

    HOW TO PUT THIS

    From time to time, on this blog, we bewail the lack of a larger than life focal point to lift our nation above the political, with its dismal take on life generally, and lack of vision.

    HARRY HART is not just some bloke who does algae, he is a seer of several decades standing who, in his mid seventies, refuses to give up on the vision of desert, sea and sun, yielding massive benefits to mankind, through the medium of algae.

    HARRY HART has qualities that have gone AWOL in recent times - to the detriment of Britain, and the world.

    'Harry Hart Studies' should be on the curriculum. We need to see his like rise again, if the rot is to be stopped.

  • Comment number 9.

    Further to #4: have just fished out my old
    Icelandic sweater and .... darn ... it has a hole in the elbow. But: I suppose I could
    now send it back to Reykjavik for repairs
    in this globalised world (except of course
    that a Labour Government has closed the
    local post office in The Nethergate). Darn!

  • Comment number 10.

    NB There is a lot of algae in Iceland ..... I still think Bjork may have the last laugh!!

  • Comment number 11.

    Don' the buses in Iceland run on hydrogen?

  • Comment number 12.

    This is all so much fun after years of boring borrowing beyond our means. As we now transmogrify our lives back to the 18th Century (we've reached the end of mankind's brief era of cheap energy and, therefore, ludicrous levels of debt), I for one am now very much looking forward to a much simpler way of life. There is, however, the small problem of unwinding the earth's population from 6 billion or so back to a more sustainable 2 billion (that could hurt a bit) but, by and large, I'm very much looking forward to the New World Order. To hell with bankers; to hell with Ryanair; to hell with the 'global village'. Bring on The Good Life is what I say.

  • Comment number 13.

    In Sweden savers have been promised by the Icelandic banks that they will not lose penny. Why is the UK being treated differently when we are all in this together. How many more countries are being let off the hook?

  • Comment number 14.

    Could we have some sort of 'Rate This Blog' feature?

    Some simple mechanism so we can register our contempt for the tedious egocentric fobgucks some wuckfads persist in flooding these forums with.

  • Comment number 15.

    Financial directors and chief exec for coucils on average get paid more than the PM. They are paid to know how to invest their money. The bank was in Iceland, It was well known that there were problem. It is their problems the claim should be against the insurance of the advisors or the professional body (Professional Indemnity) of the finacial directors - not the tax payer.

  • Comment number 16.

    It is not of course 'Gordon's plan' really, Kirsty .... as readers of the FT Economist's blog will be aware the idea of preference shares for the authorities in banks comes
    from Charlie Calomiris in the US and he is
    a former McCain adviser. A good idea still.

    Other parts of the 'Brown plan' have been taken up late from suggestions made by
    Alex Salmond up here in Scotland. I guess invoking anti-terrorism legislation to screw
    Iceland is perhaps the only bit of the plan
    not to have originated with the SNP .........

    You really hit the nail on the head when you asked Purnell what exactly Iceland's assets
    in the UK are, too. Sally Magunsson? Her brother Jon Magnusson who produces The
    Graeme Norton Show? Are they all under house-arrest? Of course not - they are UK
    citizens as well as being Icelandic! A much
    better approach would have been to talk
    to Iceland before declaring economic war.

    Iceland is a member of the Bank of International Settlements in Basle
    and the IMF - and it has also got
    lines of credit through the Nordic
    countries. They've been working
    through their problems for some
    months now. My advice would've
    been not to panic. HM Government
    is responsible for bank regulation
    in the UK - so it is frankly playing
    politics for Westminste to refuse
    to guarantee the deposits of the
    local authorities in Scotland who
    have invested money in these UK
    -registered Icelandic retail banks.

    What are bonds & Treasury bills for?
    And surely guaranteeing the small
    but critical amounts deposited by
    Scottish local authorities pales into
    insignificance when compared to the
    billions being pumped into The City.

    Glad too that you pressed Purnell
    on the issue of Executive Jobs. In
    1998, after a 12 month delay from
    DfEE/DWP in providing any answer
    to the question I put to Ministers in
    my local Job Centre when Gordon
    Brown launched New Deal I was
    told by The Scottish Office (Lord
    Gus McDonald actually answers
    letters!) that: 'As you know The
    Executive and Professional Job
    Vacancies register [which I had
    asked to see in the Job Centre
    as I was too old for The Black
    Watch!] was privatised in 1984
    and ceased to exist in 1989.'

    The Scottish Office went on to
    say as well that as job search
    support was not devolved to
    Scotland at that point and is
    still a UK "Reserved Power"
    (like bank regulation) they
    could not help me further,
    but suggested I refer the
    matter to DfEE/DWP down
    in London. In the Job Centre,
    even Donald Dewar had been
    a bit surprised to find that he
    had no powers in this area -
    a senior official present had
    jumped in before he could respond to my question about seeing the job
    vacancies register for executives and professionals and had told Dewar and me that as the DWP/DfEE's senior man in Scotland he 'reported to David Blunkett not to you Mr Dewar'.

    Ten years on I am still waiting for them to sort out which part of the empire is the one I should be complaining to and asking for
    careers advice. I am also still waiting for the British Council to provide me with my P45
    for my role in the Palestine conflict down
    in Gaza. Tony Blair got his P45 - so Mr Purnell: where the Hell is mine?

  • Comment number 17.

    Mine is not of course an isolated case either.
    Hundreds of bank executives will now be needing job search assistance from the DWP (or not since Purnell has privatised even more of their activities since I was
    told in 1998 that 'the Executive and
    Professional Job Vacancies register
    was privatised in 1984 and CEASED
    TO EXIST in 1989). [NB A lot of spivs
    then moved from senior civil service
    positions into key 'recruitment' firms].

    And I am also not the only person to have been messed around by British Council - a publicly funded Quango head up by Neil
    Kinnock and which used to have DfEE,
    FCO and DfID Permanent Secretaries
    on their Board of Trustees when some
    of the employment issues featured on
    this website were first brought to light:

  • Comment number 18.

    Hey, it's Iceland night!

    On the subject of energy (rather than the money they owe us); when people think of Climate Change, Iceland always gets mentioned as some sort of saviour -geothermal energy, hydro power, wind, wave- you name it, that country has it all. George Mombiot for instance, mentioned building some sort of super grid connected to the country. It's as though Iceland ceases to be country (with people, a democracy, wildlife, farms etc.) and is some sort of international possession we can use.

    The fact is the country being covered in artificial trees isn't going to play - it simply wont happen. Industry is often resisted (Bjork and Sigur Ros held a concert against aluminium smelting) and even when people make a joke of 'foreign' protesters like 'Saving Iceland' who are against development, the smile quickly fades if you suggest extensive development of the country. The Icelanders have contradictory attitudes like anywhere else. As much as they have clean energy, they all love oil hungry and huge 4x4s (perhaps those days will be over). In the end, it's up to the Icelandic people and even with near bankruptcy, I don't expect many of them to turn the country over the Climate Change geo-engineers at the scale mooted in the film.

    Still, with the credit crisis, Bill Clinton's comment about the age of big government being over seems like ancient history. With the climate crisis too, the 'big solution' people seem to be coming out too. The most crazy thing is that it's easier for them to envision these massive technological solutions than to expect modest changes in human behaviour. We've all been saluting the intractable 'I' for too long and one way or another it's leading us to hell in a handcart.

  • Comment number 19.

    In my adult life I have experienced two recessions , both times caused by a housing bubble and the Bank of England having to apply the brakes with high interest rates.

    Over the past 5 years we all knew house prices were rising faster than anyone's wages were , but the Bank of England this time did not stop it with high interest rates ,why ?

    What has changed ?

    That's what I want to know !

  • Comment number 20.

    This comment was removed because the moderators found it broke the house rules. Explain.

  • Comment number 21.

    This comment was removed because the moderators found it broke the house rules. Explain.

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